The Transfer Balance Cap is the maximum amount of super you can transfer into retirement-phase pensions, such as an account‑based pension, where investment earnings are tax free. Your personal TBC is calculated and tracked by the ATO.
The government has confirmed the general transfer balance cap is increasing to $2.1 million from 1 July 2026. How this affects you depends on your situation:Â
If you start a pension for the first time on or after 1 July 2026Â
Your personal transfer balance cap will be $2.1 million.
If you already have a retirement‑phase pension
The increase may apply proportionally, based on how much of your cap you have already used:
Subject to final ATO confirmation, the following superannuation limits are also expected to increase from 1 July 2026:
| Limit | Expected change |
| Concessional (before‑tax) contributions cap | Increase to $32,500 per year |
| Non‑concessional (after‑tax) contributions cap | Increase to $130,000 per year |
| Bring‑forward rule | Up to $390,000 in one year (if eligible) |
| Total Superannuation Balance threshold | Increase to $2.1 million |
| Superannuation Guarantee rate | Remains at 12% |
Final figures are typically confirmed closer to the start of the financial year.
Superannuation rules are complex and tightly regulated. Whether these changes create an opportunity for you depends on your age, income, existing balances and how much of your transfer balance cap you have already used.
Before starting a pension or making changes to your super strategy, it’s important to seek professional advice to ensure any action is appropriate and stays within the rules.
